Citizens Energy Group is taking another look at its compensation system after coming under heated criticism from Indiana utility regulators for giving hefty raises to its executives and board members while seeking to raise water rates.

The Indianapolis utility confirmed it will hire another compensation consultant to begin a “total remuneration study.” The study will examine every aspect of compensation and benefits of all executives, said Sarah Holsapple, a Citizens spokeswoman.

The purpose is “to ensure that Citizens is able to attract and retain the best talent while providing safe, reliable, quality and affordable services to its ratepayers,” she said in a statement.

The Indianapolis Star reported in July that CEO Carey Lykins earned $2.9 million last year, nearly double what he made the previous year and more than triple what the leaders of other large municipal gas utilities earned.

Other executives at the company also saw big raises in 2012, with compensations for the company’s top 14 officials growing 54 percent, for a total of $11.2 million, according to state filings and information the company provided to The Star.

The members of Citizens’ governing board also voted to dramatically increase their own pay.

The raises came as the company was seeking a 14.7 percent rate hike for Indianapolis water customers. Before buying the water and sewer utilties in 2012 from the city, Citizens promised to keep rates low.

State regulators had grilled Citizens’ executives in July about the appropriateness of the pay raises during a hearing in July over the rate request.

Lykins defended his pay raises to the Indiana Utility Regulatory Commission, saying the acquisition of sewer and water systems representated an “extraordinary” achievement.

Citizens had already hired a consultant, Pearl Meyer and Partners, to make recommendations to the board for executive compensation, at a cost of $97,341. The second consultant will review those recommendations, Holsapple said.

Call Star reporter John Russell at (317) 444-6283. Follow him on Twitter: johnrussell99.